Resolutions adopting the City of Mankato 2025-2029 Community Development Block Grant (CDBG) Consolidated Plan and 2025 Annual Action Plan.

Adoption of attached resolutions.

On June 8, 2020, the City Council adopted the City of Mankato 2020-2024 Consolidated Plan for utilization of CDBG funding. The plan details how the expected annual funding from the Department of Housing and Urban Development (HUD) will be used in conformance with CDBG guidelines and guides the use of funds for each annual action plan. The final year of the plan ends on June 30, 2025 and the City is required to adopt a new plan to guide CDBG utilization for the next five years. 
 
In an effort to gather input on the housing, homeless, social service and economic development needs within the community, three focus groups were held in February, an online survey was developed and open to the public, and comments were solicited from local nonprofit and service organizations, as well as the general public. The community feedback and identified needs have been incorporated into the full plan. 
 
In addition to discussing strategies to meet the identified community needs and specifying the goals over the next five years, the Consolidated Plan includes the 2025 Action Plan, which spells out the goals and spending plan for the next year. The funding level for the 2025 program year is $435,932. Additionally, it is suggested that program income and past unspent funds, which totals $2,000, be reallocated for the 2025 program year. 

Below is a summary of funding and proposed activities:     

Funding
2025 CDBG Allocation	$435,932.00
2024 Program Income	$2,000.00
Total	$437,932.00

 

Proposed Activities
Program/Project	Use	Amount
Affordable Housing	The need for additional affordable housing was stated numerous times during public engagement for the plan. CDBG funds would be used towards site acquisition costs for affordable housing projects. A sub-grant would be provided to leverage Trellis’ Low Income Housing Tax Credit project to construct 40 units of affordable housing. Another subgrant would be provided to the Partnership Community Land Trust.	$230,000
Rental Housing Rehabilitation	The need for rehabilitation of rental units was stated numerous times during public engagement for the plan. This would be funding for 2 units.	$20,000
Owner Occupied Housing Rehabilitation	Continuation of funding of owner occupied homes. This would fund 2 units.	$72,932
Public Service Grants	Similar to past years, would be awarded through requests for proposals for public service activities that meet a community need as identified during the public engagement for the plan and also primarily benefit low to moderate income households.	$65,000
Administration and Planning	Costs associated with administering the CDBG program.	$50,000
		$437,932

 
The table above represents the proposed funding and uses for the 2025 program year.
 
The plan was posted for public comment April 11, 2025 through May 11, 2025. No comments were made during the public comment period. Any additional comments made at the public hearing can still be considered by the City Council and if it is determined that a change to the plans is warranted, City staff will modify the plans prior to submission to HUD.